Industry News

Survey reveals ignorance about homeowner’s insurance

While home values rise, many homeowners do not increase insurance coverage

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Homeowners are largely unaware about the scope of the insurance policies that cover their homes, according to a Harris Interactive survey. About 37 percent of respondents correctly answered six of 12 questions about basic insurance coverage on their homeowner and auto policies, according to the survey, conducted for insurer Fireman's Fund. The survey is based on responses from about 1,000 affluent homeowners across the country. Of those polled, 88 percent said they know what their homeowner's policy does and does not cover, yet further questioning revealed that many respondents also believed that their homeowner's policy covered more property than would actually be covered in the event of a disaster. "We found that two-thirds of those surveyed believed that their policy would provide home replacement of like kind and quality in the event of a major loss," said Scott Garfield, vice president for Fireman's Fund. "Yet we know that the most common homeowners policies sold in America (t...